"We have approved and will send to the Riigikogu the amendments to the Earth's Crust Act, which will suspend (the provision of new) oil shale mining permits until 2026. The Ministry of Climate is in the process of drafting and discussing the climate law, which is set to form the basis for how Estonia will achieve climate neutrality by 2050, with stakeholders," Prime Minister Kaja Kallas (Reform) said at a government press conference.

"One of the biggest obstacles on the path to climate neutrality is greenhouse gases, and 45 percent of these come from the oil shale industry. That is why we need to suspend the construction of new oil shale mines until the climate law is in place," Kallas said.

Estonia's goal is to achieve climate neutrality by 2050. To this end, the Ministry of Climate is drafting a law for a climate-resilient economy, which will establish a general framework to achieve the required targets. Considering that 45 percent of Estonia's greenhouse gases are produced by oil shale processing, the granting of permits for new oil shale mines must be suspended while the framework for climate targets is being developed. Suspension of the permit process will not restrict oil shale companies' current activities, according to the government's communications office.

"With valid mining permits, the total amount of oil shale reserves are up to 247 million tonnes. Estonia's annual mining capacity is around 10 million tonnes. This means that the supply covered by permits alone would be sufficient for oil shale companies to last around 25 years," said Estonian Minister of Climate Kristen Michal (Reform).

"At the same time, applications are currently pending for the right to extract around 680 million tonnes of additional oil shale reserves. This would be enough for far beyond 2050," Michal added.

Companies will have sufficient oil shale reserves for the period during which permit procedures are suspended. For example, Enefit currently has 173 million tonnes, VKG has 62 million tonnes and Kiviõli Chemical Industry 9 million tonnes. Companies with lower stockpiles under current permits would still have up to five years-worth of reserves, the government's communications office said.

Exceptions are allowed in cases where expansion is planned in an area adjacent to an existing mine and a permit already exists. The state will also not extend the validity of permits for areas to be expanded, until 2026. Exemptions will only be granted if they are deemed to assist in extracting oil shale from the ground in a more efficient way and in compliance with environmental requirements.

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